Credit Suisse CEO resigns after spying scandal

Feb. 7 (UPI) -- Credit Suisse CEO Tidjane Thiam will step down after a spying scandal involving former employees, the Swiss investment bank announced Friday.

Thiam resigned Thursday and will be replaced by Credit Suisse veteran Thomas Gottstein after fourth quarter results are announced Feb. 14.

A surveillance scandal within the bank rocked the Swiss banking world and led to Thiam's departure. Pierre-Oliver Bouee, the bank's former chief operating officer, was implicated in two spying operations in 2019. One involved Iqbal Khan, the bank's former wealth management chief, who left Credit Suisse for rival UBS. Bouee reportedly feared that Credit Suisse customers and employees could follow Khan to UBS, and ordered surveillance on Khan. Bouee resigned after the spying was revealed. He was also responsible, Credit Suisse later said, for another surveillance operation on the bank's former head of human resources. In statements in 2019, the bank said that neither Thiam nor its board of directors were aware of Bouee's actions.

The scandal led to the suicide of the private investigator involved in the surveillance.

"I had no knowledge of the observation of two former colleagues," Thiam said in Friday's statement. "It undoubtedly disturbed Credit Suisse and caused anxiety and hurt. I regret that this happened and it should never have taken place."

Credit Suisse posted a $3 billion loss in 2015, when Tidjane took over. He led the bank to profitability despite a 46 percent decline in its stock price during his tenure. European banks are dealing with falling investment revenue and low interest rates on lending. UBS stock has fallen similarly.

"Under Tidjane's leadership, Credit Suisse simultaneously repurposed our strategy, restored our capital, reduced our costs, de-risked our business, promoted diversity and engendered an exceptional level of co-operation between various divisions," Urs Rohner, Credit Suisse chairman said in the statement Friday. "Credit Suisse is in good health and we have a deep bench of talent which can build on his achievements."

Gottstein, the next CEO, is currently chief of the bank's Swiss division.